Abominable Greenhouse Gas Bookkeeping Casts Serious Doubts on Climate Intentions of Oil and Gas Companies

17 Pages Posted: 23 May 2023

See all articles by Sergio García Vega

Sergio García Vega

University College Dublin

Andreas G. F. Hoepner

Smurfit Graduate Business School, University College Dublin; European Commission - DG FISMA

Joeri Rogelj

International Institute for Applied Systems Analysis (IIASA)

Frank Schiemann

University of Bamberg

Date Written: March 30, 2023

Abstract

The Paris Agreement aims to reach net zero greenhouse gas (GHG) emissions in the second half of the 21st century, and the Oil & Gas sector plays a key role in achieving this transition. Understanding progress in emission reductions in the private sector relies on the disclosure of corporate climate-related data, and the Carbon Disclosure Project (CDP) is considered a leader in this area. Companies report voluntarily to CDP, providing total emissions and breakdowns into categories. How reliable are these accounts? Here, we show that their reliability is likely very poor. A significant proportion of Oil & Gas companies' emission reports between 2010 and 2019 fail a 'simple summation' mathematical test that identifies if the breakdowns add up to the totals. Companies' reports reflect unbalanced internal bookkeeping in 38.9% of cases, which suggests worryingly low quality standards for data guiding the private sector's contribution to halting climate change.

Keywords: Greenhouse Gas Emissions, Oil & Gas, Carbon Disclosure Project

Suggested Citation

García Vega, Sergio and Hoepner, Andreas G. F. and Rogelj, Joeri and Schiemann, Frank, Abominable Greenhouse Gas Bookkeeping Casts Serious Doubts on Climate Intentions of Oil and Gas Companies (March 30, 2023). Available at SSRN: https://ssrn.com/abstract=4451926 or http://dx.doi.org/10.2139/ssrn.4451926

Sergio García Vega (Contact Author)

University College Dublin

Andreas G. F. Hoepner

Smurfit Graduate Business School, University College Dublin ( email )

Blackrock, Co. Dublin
Ireland

European Commission - DG FISMA ( email )

2 Rue de Spa
Brussels, 1000
Belgium

Joeri Rogelj

International Institute for Applied Systems Analysis (IIASA)

Schlossplatz 1
Laxenburg, A-2361
Austria

Frank Schiemann

University of Bamberg ( email )

Feldkirchenstr. 21
Bamberg, 96052
Germany

HOME PAGE: http://https://www.uni-bamberg.de/bwl-controlling/

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